Published 8:36 am, Tuesday, March 8, 2011

State Sen. Leticia Van de Putte (D-San Antonio) and Reps. Senfronia Thompson (D-Houston) and Mike Hamilton (R-Mauriceville) filed resolutions March 8 proposing a constitutional amendment and enabling legislation that would allow charitable bingo locations to have a limited number of video gaming machines, if Texas voters approve expanded gaming.

Van de Putte chairs the Senate Committee on Veterans Affairs and Military Installations. Thompson and Hamilton chair the House Committees on Local and Consent Calendars and Licensing and Administrative Procedures, respectively.

“My constituents enjoy playing bingo and they like knowing that while socializing and having fun they are helping someone in our community," Van de Putte said. "Proceeds from bingo charities enable many non-profits to aid families."

“People have been playing bingo since the early ‘80s, so this bill will not expand the footprint of gaming,” said Thompson. “I’m happy that Chairman Hamilton is co-authoring this legislation in the House so we can make sure charitable bingo’s interests are considered along with all the other options.”

“I don’t see this proposal as being in competition with the others,” Hamilton said. “The folks in charitable bingo haven’t come out against anyone else’s proposal. It’s just another piece in the puzzle that would allow them to compete to survive in a new environment.”

Hamilton’s committee has historically controlled legislation affecting the state lottery, charitable bingo and the Texas Racing Commission, and in the past has taken testimony on several proposals to expand gaming.

The legislators’ bills - based on a proposal made last year by the Coalition for the Survival of Charitable Bingo - allows only locations operated under bingo licenses in effect on Jan. 1, 2011, to offer video gaming machines. The smallest locations could have up to 30 machines, mid-sized locations could have up to 60 and the largest could have up to 120.

The state of Texas would receive 20 percent of the revenue remaining after prizes are paid, generating almost $500 million for its 2012-2013 budget. The bingo charities at every location, including those with for-profit hall owners, would receive 10 percent of the money remaining after prizes are paid. Since two-thirds of bingo locations are owned or controlled by charities, at those locations charities would also receive the net revenue from video gaming operations.

The two revenue streams combined would generate about $330 million for the charities in 2012-2013, giving them a source of funds to take on some of the services the state will no longer provide if expected budget cuts become a reality.

The joint proposal is designed to allow rapid implementation of video gaming in charitable bingo locations because the Comptroller’s Office has said that delayed implementation will almost eliminate the possibility of funds being timely available to certify the state’s budget.

The Texas Lottery Commission would regulate the games using extensive powers granted in the legislation to enforce strict standards specified in the bills, rather than waiting for extensive agency rulemaking proceedings that can last six months to a year, so revenues would be maximized while the integrity of the gaming at charitable bingo locations is beyond reproach.

Manufacturers of video gaming systems would provide the commission with equipment - at no cost to the state of Texas - to monitor video gaming and allow machines anywhere in the state to be shut down, if needed.

Equipment approved for use in other states would be automatically approved for use in Texas based on testing performed by nationally-recognized independent laboratories, eliminating the long lead times other states have experienced with their internal testing and approval of each manufacturer’s equipment. (The commission could bar equipment approved in any state whose standards the commission believes are not secure enough.)

Current licensees associated with charitable bingo have already been screened with criminal background checks, as have out-of-state manufacturers, so charitable bingo locations could begin conducting video gaming almost at once. Some 17 million customer visits were made at charitable bingo locations last year, so the facilities are virtually ready for the new games and the need to market the locations would be minimized

The proposal also establishes a system whereby, anywhere in the state, undesirable people can be excluded from participation in video gaming and people who want to can voluntarily exclude themselves from gaming for periods of time up to life. In addition, local jurisdictions could opt out, preventing video gaming with their areas.